Bank Indonesia (BI) reported the country' foreign exchange reserves lowered to US$133.7 billion in October from September stood at $135.2 billion - Photo: Special

JAKARTA (TheInsiderStories) – Good Morning! Indonesia’ central bank (BI) in talks with the United States (US) Federal Reserve on the potential currency swaps. Currently, the Bank has a bilateral swaps with China worth of US$30 billion, Japan $22.7 billion, around $10 billion with Singapore and an undisclosed amount with Australia and other central banks.

Until end of March, BI’ forex reserves recorded $130.4 billion and having pumped Rp172.5 trillion ($10.78 billion) to buy government bonds in the secondary market, as capital outflows reached Rp145.1 trillion  in the first quarter of the year with investors worldwide selling off risky assets. So far, BI has been stabilizing the Rupiah through its “triple market intervention” measures, as the exchange rate depreciated around 15 percent so far this year.

On Thursday, the local currency weakened 1.47 percent to 16,470 against the US Dollar and the Jakarta Composite Index closed up 1.47 percent to 4,531.69. The transaction value was recorded at only Rp 5.72 trillion but foreign investors still recorded a net sell of Rp396.26 billion.

The coordinator minister for economic affairs, Airlangga Hartarto assured, the availability of food enough to cover the people’ needs until eid fitr and the commodity prices stable. He asserted, the government also allowed two state-owned firm, Perum Bulog and PT Rajawali Nusantara Indonesia to buy commodities as many as 100,000 tons and allows 157,068 tons of import permits of garlic for the importers.

Today, President Joko Widodo is scheduled to lead a limited meeting related to the 09.30 strategy for improving Indonesia’s ranking in the Program for International Student Assessment. This month the largest economy in Southeast Asia plans to distributes the stimulus package to the recipients.

Globally, US labor department reported, the initial unemployment benefits surged to a new record 6.65 million, as the full impact of the fallout from the pandemic on the labor market became apparent. The increase dwarfed the prior week’ figure of 3.28 million and eclipsed the previous record of 695,000 set in 1982. The number of people already receiving benefits increased to 3.029 million.

While, US’ congressional budget office showed the economic growth will decline by more than 7 percent in the second quarter as the COVID-19 crisis takes hold. The agency also sees the interest rates on 10-year Treasuries will likely be below one percent during the quarter.

Until Thursday, global coronavirus cases surpassed 1 million with more than 52,000 deaths as the pandemic further exploded in the US and the death toll climbed in Spain and Italy. In Indonesia total death toll reached 170, 112 cured, and the positive cases climbed to 1,790.

In thhe stock market, US’ Wall Street ended up solidly in the green. The Dow rose 2.24 percent, S&P 500 added 2.3 percent and the Nasdaq Composite was 1.7 percent higher. US stocks rallied after he had brokered a deal with top crude producers Russia and Saudi Arabia to cut output amid the coronavirus pandemic

He expect, both countries to cut up to 15 million barrels oil production. Saudi itself said, it would call an emergency meeting of the oil carte.

Today, the analysts rated that the weakening of the Rupiah was due to increased market concerns on spread of the COVID-19. In addition, the market was disappointed by the statement of the finance minister Sri Mulyani Indrawati, who assumed that the local currency could reach 17,500 to 20,000 against the Greenback due to the pandemic.

In his remarked on Thursday, BI’ governor, Perry Warjiyo revealed that the inflow of funds from the debt auction will bring the Rupiah movements to the level of 15,000 versus the US Dollar by the end of the year. At present, he sees an undervalued rupiah.

On Friday, the exchange rate is projected to move in the range of 16,470 to 16,700 a US Dollar and the JCI between 4,250 to 4,650 compared to yesterday.

The stocks to be watch for today are, PT Bank Central Asia Tbk (IDX: BBCA), PT United Tractors Tbk (IDX: UNTR), PT Japfa Comfeed Indonesia Tbk, PT Semen Indonesia Tbk (IDX: SMGR), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Telekomunikasi Indonesia Tbk (IDX: TLKM), PT Perusahaan Gas Negara Tbk (IDX: PGAS), PT Merdeka Copper Gold Tbk (IDX: MDKA), PT HM Sampoerna Tbk (IDX: HMSP), PT Gudang Garam Tbk (IDX: GGRM), PT XL Axiata Tbk (IDX: EXCL), and PT Bank Negara Indonesia Tbk (IDX: BBNI).

May you have a profitable day!

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia